 Question 1 of 56

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Question 1
The decisions with long term implication are called
Strategic decisions
Routine decisions
Programmed decisions
None of above

4 points  

 Question 2 of 56
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Question 2
This is a strategic decision
Production schedule
Inventory level
Location and layout
Manpower requirement
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Question 3
Product design is a
Strategic decision
Tactical decision
Routine decision
None of above

4 points  

 Question 3 of 56
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  Question 4 of 56

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Question 4
This is a factor affecting site selection

Labour supply

Marketing

Raw material

All above

4 points  

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Question 5
Statistical Process Control charts
display the measurements on every item being produced
display upper and lower limits for process variables or attributes, and signal when a
process is no longer in control
indicate to the process operator the average outgoing quality of each lot
indicate to the operator the true quality of material leaving the process

2 points  

 Question 5 of 56
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 Question 6 of 56

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 Question 6
According to the text, the most common choice for limits for control charts is usually

±1 standard deviation

± 2 standard deviations

±3 standard deviations

±3 standard deviation for means and ±2 standard deviations for ranges

2 points  

 Question 7 of 56
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Question 7
Which of the following dispatching rules allows easy updates?
FCFS: first come, first served
SPT: shortest processing time
EDD: earliest due date
CR: critical ratio

2 points  

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 Question 8 of 56

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Question 8
 Operations can be classified according to the degree of variations in demand and visibility of the
operations as well as their volume and variety of production which of the following operations would
be classified as high variation & high visibility ?

A front office staff

A family doctor

A carpenter

A fast food restaurant

2 points  

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 Question 9 of 56

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Question 9
The probability of a good lot being rejected is

Consumer risk

    Supplier risk

    Both a and b

    Not a risk

2 points  

 Question 9 of 56

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 Question 10 of 56
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 Question 10
A master production schedule specifies
the financial resources required for production
what component is to be made, and when
what product is to be made, and when
the labor hours required for production
 Question 11 of 56
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Question 11
What type of control chart is used to monitor the number of defects per unit? 2 point
p-chart
R-chart
c-chart
x-bar chart
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 Question 12 of 56

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Question 12
A layout for allowing workers to operate more machines is called

Multi-tasking

    Multi-functional

    Hybrid

    None of above

2 points  

 Question 12 of 56

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 Question 13 of 56
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Question 13
AQL stands for
Acceptable quality lot
    Acceptable quality level
    Average quality level
    None of above

2 points  

 Question 13 of 56
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 Question 14 of 56

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Question 14
If an assignment problem consists of 6 workers and 7 projects,

one worker will not get a project assignment

one worker will be assigned two projects

each worker will contribute work toward the seventh project

one project will not get a worker assigned

2 points  

 Question 14 of 56

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 Question 15 of 56
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 Question 15
The transportation model method that is used to evaluate location alternatives minimizes total
sources
destinations
capacity
shipping costs

2 points  

 Question 15 of 56
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 Question 16 of 56
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Question 16
Using the economic order quantity model, which of the following is the total ordering cost of
inventory given an annual demand of 36,000 units, a cost per order of $80 and a holding cost
per unit per year of $4?  

849

1200

1889

2400

2 points  

 Question 16 of 56

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Question 17
Which of the following statements best compares modular bills and phantom bills?

Both pertain to assemblies that are not inventoried.

There is no difference between the two.

Both pertain to assemblies that are inventoried.

Modular bills represent subassemblies that actually exist and are inventoried, while phantom
bills represent subassemblies that exist only temporarily and are not inventoried
 2 points  

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Question 18
Material requirements plan specify

the quantities of the product families that need to be produced

the quantity and timing of planned order releases

the capacity needed to provide the projected output rate

the costs associated with alternative plans

2 points  

 Question 19 of 56
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Question 19
In continuous (make-to-stock) operations, the master production schedule is usually expressed in
terms of

end-items

modules

kits

customer orders

2 points  

 Question 19 of 56
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  Question 20 of 56
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Question 20
Deciding about replenishment of inventory is a part of

Material purchase

    Material storage

    Material scheduling

    All above

2 points  

 Question 20 of 56
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 Question 21 of 56
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Question 21
A scheduling technique used to achieve optimum, one-to-one matching of tasks and resources is

the assignment method

Johnson's rule

the CDS Algorithm

the appointment method

5 points  

 Question 21 of 56
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Question 22
This is a method of change in production level

Inventory
 Subcontracting

Overtime

All above

5 points  

 Question 23 of 56
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Question 23
Most inventory models attempt to minimize

the likelihood of a stockout

the number of items ordered

total inventory based costs

the number of orders placed

5 points  
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 Question 24 of 56

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Question 24
The two most basic inventory questions answered by the typical inventory model are

timing and cost of orders

quantity and cost of orders

timing and quantity of orders

order quantity and service level

 5 points  

 Question 24 of 56

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 Question 25 of 56
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Question 25
The probability of a good lot being rejected is consumer risk

True

False

1 points  

 Question 25 of 56
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 Question 26 of 56
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Question 26
A proactive approach to forecasting views forecasts as probable descriptions of future demand, and
requires action to be taken to meet that demand. 

True

False

1 points  

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  Question 27 of 56

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Question 27
Inventory decisions are strategic decisions

True

False

1 points  

 Question 27 of 56

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 Question 28 of 56

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Question 28
Nominal group method of forecasting is a technique based ontime series

True

False

1 points  

 Question 28 of 56

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 Question 29 of 56

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Question 29

If a pattern appears when a dependent variable is plotted against time, one should use time
series analysis instead of regression analysis.

True

False

1 points  

 Question 29 of 56

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 Question 30 of 56
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Question 30
Darryl is a chemist at a pharmaceutical company, and he was asked by the decision-making unit at his
company to visit and evaluate potential vendors that will supply his company with the chemicals
required to manufacture their products and to conduct laboratory tests of a new product that can be
used in the manufacture of their products. Then is Darryl is assisting the company with informal
information search.

True

False

1 points  

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 Question 31 of 56

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Question 31
If a sample of parts is measured and the mean of the measurements is outside the control limits the
process is out of control and the process should be investigated for assignable variation.

True

False

1 points  

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Question 32
Payments, warranties, delivery dates, and so forth represent terms and conditions.

True

False

1 points  

 Question 32 of 56
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 Question 33 of 56

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Question 33
Change in demand pattern over a long span of time is called seasonal influence

True

False

1 points  

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 Question 34 of 56

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Question 34
When quantity discounts are allowed, the cost-minimizing order quantity

minimizes the sum of holding and ordering costs

minimizes the unit purchase price

may be a quantity below that at which one qualifies for that price

minimizes the sum of holding, ordering, and product costs

1 points  

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Question 35
Climate is a factor affecting site selection

True

False
 1 points  

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Question 36
It is easier to measure productivity for an operation that provides services than for one that produces
goods.

True

False

1 points  

 Question 37 of 56
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Question 37
Kaizen is a Japanese term meaning continuous improvement.

True

False

1 points  
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Question 38
An advantage of trend adjusted exponential smoothing over the linear trend equation is its ability to
adjust over time to changes in the trend.

True

False

1 points  

 Question 39 of 56
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 Question 39
Designing for disassembly and designing for recycling are nearly synonymous terms.

True

False

1 points  

 Question 39 of 56
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 Question 40 of 56

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Question 40
SQC should be applied to vendors

True

False

1 points  

 Question 40 of 56

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 Question 41 of 56
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Question 41
Quality Circles members are paid according to their contribution to quality.

True

False
 1 points  

 Question 41 of 56
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 Question 42 of 56
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Question 42
A good layout affects quality

True

False

1 points  

 Question 42 of 56
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 Question 43 of 56

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Question 43
Bias is measured by the cumulative sum of forecast errors.

True

False

1 points  

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 Question 44 of 56

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Question 44
A tool for verifying design against failures is called FMEA

True

False

1 points  

 Question 45 of 56
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Question 45
The sample standard deviation of forecast error is equal to the square root of MSE.

True

False

1 points  
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Question 46
Curvilinear and multiple regression procedures permit us to extend associative models to relationships
that are non-linear or involve more than one predictor variable.

True

False

1 points  

 Question 46 of 56
  Question 47 of 56
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Question 47
The organization in India for granting ISO 9000 is DGET

True

False
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 Question 48 of 56

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Question 48
Productivity is defined as the ratio of output to input.

True

False

1 points  

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 Question 49 of 56

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Question 49
Organizational objectives can be categorized as commercial, governmental, nonprofit, and
cooperative.

True

False
 1 points  

 Question 50 of 56
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Question 50
A chase plan is characterized by low inventory

True

False

1 points  

 Question 50 of 56
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 Question 51 of 56

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Question 51
Organizations that are capable of responding quickly to changing requirements can use a shorter
forecast horizon and therefore benefit from more accurate forecasts.

True

False

1 points  

 Question 51 of 56

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 Question 52
Exponential smoothing is a method based on time series

True

False

1 points  

 Question 53 of 56
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Question 53
A document describing quantity of end items to be produced within specified periods of time is called
MPS

True

False

1 points  

 Question 54 of 56
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Question 54
Nominal group method of forecasting is a technique based ontime series

True

False

1 points  

 Question 54 of 56
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 Question 55 of 56
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Question 55
The product of achievable capacity and efficiency is called maximum capacity
 True

False
Save and Submit

 Question 56 of 56
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Question 56
Organizations with distinguishing firmographics can be grouped into market segments through a
process called macrosegmentation .

True

False

1 points